Global Diamond struggles with bank debt

Denver — Global Diamond Resources (GDRS-O) has called upon its major shareholders to save it from financial ruin.

The Standard Bank of South Africa was granted rights to liquidate the company’s operating subsidiary to recoup a debt of R$1.5 million (US$180,000).

Global Diamond is appealing the liquidation notice. In the meantime, the company’s major shareholders have agreed to advance funds to the company to repay the Standard Bank debt once the liquidation notice is withdrawn.

As of June 2000, IPCM held 20.4% of the 48.7 million shares of Global Diamond, while New Diamond and LIWA Diamond controlled another 19% interest.

Standard Bank, which holds a bond over the company’s principal plant and equipment, has not disclosed whether it intends to withdraw the liquidation notice, and could not be reached for comment.

Global Diamond’s main assets include the Grasdrif alluvial diamond deposit on the southern bank of the Orange river, the Caerwinning alluvial deposit and the Montrose kimberlite, all in South Africa.